If more protocols continue to be developed on public networks, particularly Ethereum, then Private blockchains might not be able to survive – according to the Blockchain lead Paul Brody at one of the top four global auditors, Ernest & Young. Big banks that are developing or investigating private chains like R3 Corda, in Brody’s opinion, will soon learn that their strategy is “ineffective in driving adoption.” The Ernest and Young official backs Ethereum with his thoughts on social media platform X during the Real World Asset Summit, specifically about the talks held therein.
The inaugural Real-World Asset Summit, an invitation-only one-day conference with panel discussions and networking opportunities, is focused on determining the direction of the tokenized and digitized real-world asset sector. This prestigious meet was held in The William Vale Hotel in Brooklyn, New York, on September 19 from 8 a.m. to 9 p.m.
Why Ethereum is Endorsed?
The success of certain leading ledgers, notably Ethereum, can be attributed to the ability to transact freely in an open, safe network. For instance, as of September 20, Ethereum had a market capitalization of over $195 billion and was backed by significant tech firms, including Visa and PayPal.
Hot wallets that are freely available for use, such as MetaMask or Coinbase Wallet, serve as interfaces for users to communicate with the underlying blockchain while sending transactions, minting, trading and doing a lot more. Users can only send transactions from one location to another in other networks like Bitcoin.
Most importantly, Visa is developing a program that will let customers use their cards to pay for gasoline on Ethereum – which provides all the more reasons for people to gravitate towards the use of Ethereum. By allowing users to communicate with the network sans having to buy ETH for gas fees, this improvement could increase the adoption of Ethereum. On the other side, PayPal launched its stablecoin, PYUSD, on Ethereum via Paxos.
Opinions based on the Conference talks
At the above mentioned conference, Brody and several other guests heard from professionals regarding tokenization, cryptocurrency, and credit. After understanding the crux of these discussions, the Ernest and Young official backs Ethereum. The Real World Asset Summit, an exclusive event for attending which tickets need to be purchased, was sponsored by many leading cryptocurrency companies, including Circle, the company behind USDC, the second-largest stablecoin after USDT and Coinbase, a cryptocurrency exchange.
Two hundred fifty individuals were invited to the event in New York, and 40 presenters gave introspective speeches, including pioneers of decentralized finance (DeFi), such as Robert Leshner of Compound and Jesse Pollak of Base. The base is a layer-2 protocol for Ethereum, whereas Compound Finance is an Ethereum-based borrowings and lendings protocol that algorithmically affixes interest rates based on the activity in its liquidity pools.
Given the giant number of participants, it is uncertain which of them Brody’s comment had alluded to, if any at all. However, he has explained why he endorses the Ethereum coin. Public financial networks like Bitcoin and Ethereum are built upon broadness and decentralization, as opposed to closed-off private chains. Brody mentions that anyone can engage with the base layer freely, thanks to the freedom offered by public chains, so long as they possess a crypto wallet and an internet connection. Such ease of access and liberty are what shall make Ethereum outlive and outperform other private blockchain networks, as stated by Brody. This is the utmost reason why the Ernest and Young official backs Ethereum.
It is noteworthy to mention that the Ernest and Young official backs Ethereum after something similar that already happened in the same company, almost as a follow-up to that occurrence. Early this year, Dogecoin (DOGE) support was added to Ernst & Young’s (EY) Blockchain Analyzer: reconciler, increasing the number of coins available to its users. Earlier versions supported, besides other existent blockchains, the obvious Ethereum and Bitcoin. The instrument enables the auditor to match up client records and the general ledger.